Germany, the largest European economy, would consume this year the smallest amount of energy since the beginning of the publication of statistical data, given that the problems in the manufacturing industry also affect energy demand, Bloomberg reports.
The think tank Working Group on Energy Balances (AG Energiebilanzen) forecasts that this year Germany’s total energy consumption will be 10,784 Petajoules (2,996 Terawatt hours) 8% less than in 2022, the year in which the European energy crisis hit Germany hard, and 28% less than the amount of 14,905 Petajoules consumed in 1990, when statistical data on this indicator began to be collected, according to Agerpres.
According to analysts from AG Energiebilanzen, Germany’s energy consumption was particularly influenced by economic developments. This year, Germany’s GDP is likely to decline by as much as 0.5%. Large energy-consuming industries experienced production declines, which had a significant impact on energy consumption. In addition, the warmer weather compared to the previous year also contributed to the reduction of energy consumption. According to calculations by AG Energiebilanzen, about a fifth of the total percentage reduction in consumption can be attributed to favorable temperatures. Another factor that has affected energy consumption is the high price, which has led to savings and production cuts in energy-intensive industries.
Earlier this week, the International Energy Agency warned that Germany’s demand for petroleum products is likely to record the largest drop among OECD countries in 2023. In addition, Germany has become a net importer of electricity since May this year, with the shutdown of its last nuclear reactors.
At the beginning of October, the German Government announced that it expects the economy to contract by 0.4% this year due to persistent inflation, high energy prices and a decrease in international trade. The revised forecasts contrast with the economic growth of 0.4% forecast in April for this year. However, the government in Berlin predicts that after the contraction of 0.4% in 2023, there will be a return to growth of the Gross Domestic Product, up to an advance of 1.3% in 2024 and one of 1.5% in 2025.